Recon Technology (NASDAQ:RCON) and North American Construction Group (NYSE:NOA) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
0.4% of Recon Technology shares are held by institutional investors. Comparatively, 55.5% of North American Construction Group shares are held by institutional investors. 28.0% of Recon Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
North American Construction Group pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. Recon Technology does not pay a dividend. North American Construction Group pays out 14.3% of its earnings in the form of a dividend. North American Construction Group has increased its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Recon Technology and North American Construction Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Recon Technology||$12.80 million||0.87||-$6.65 million||N/A||N/A|
|North American Construction Group||$316.40 million||1.05||$11.85 million||$0.42||29.07|
North American Construction Group has higher revenue and earnings than Recon Technology.
Volatility and Risk
Recon Technology has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, North American Construction Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Recon Technology and North American Construction Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|North American Construction Group||0||0||2||2||3.50|
Recon Technology presently has a consensus price target of $2.00, suggesting a potential upside of 110.53%. Given Recon Technology’s higher probable upside, equities analysts clearly believe Recon Technology is more favorable than North American Construction Group.
This table compares Recon Technology and North American Construction Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|North American Construction Group||2.34%||12.32%||3.33%|
North American Construction Group beats Recon Technology on 12 of the 16 factors compared between the two stocks.
Recon Technology Company Profile
Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. The company offers equipment, tools, and other hardware related to oilfield production and management, and transportation; and develops and sells industrial automation control and information solutions. It also provides oil and gas production enhancing techniques comprising packers of fracturing; production packers; sand prevention in oil and water wells; water locating and plugging techniques; fissure shaper; fracture acidizing technique; and electronic broken-down service to resolve block-up and freezing problems. In addition, the company offers automation systems and services, including pumping unit controller that monitors the pumping units and collects data; RTU to monitor natural gas wells and collect gas well pressure data; wireless dynamometers and wireless pressure gauges; electric multi-way valves for oilfield metering station flow control; and natural gas flow computer systems. Further, it provides Recon SCADA oilfield monitor and data acquisition system for supervision and data collection; EPC service of pipeline SCADA system for pipeline monitoring and data acquisition; EPC service of oil and gas wells SCADA system for monitoring and data acquisition of oil wells and natural gas wells; EPC service of oilfield video surveillance and control system to control the oil and gas wellhead and measurement station areas; and technique service for digital oilfield transformation. Additionally, the company offers oilfield waste water treatment solutions and related chemicals; and oily sludge disposal solutions. Recon Technology, Ltd. was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China.
North American Construction Group Company Profile
North American Construction Group Ltd. engages in providing mining and heavy construction services. It offers their services to customers in the resource development and industrial construction sectors, primarily within Western Canada. The company focuses on supporting the construction and operation of surface mines, in the oil sands. The company was founded in 1953 and is headquartered in Acheson, Canada.
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